Economy · August 6, 2022

SMFB’s income increased 8% in the first half despite higher input costs

San Miguel Food and Beverage Inc. (SMFB) said its first-half income grew 8% to £ 18.8 billion from last year’s £ 17.36 billion, as the company said it having recorded a record performance since its consolidation in 2018 despite higher prices and depreciation of the currency.

Consolidated revenues grew 17% to £ 172.1 billion from last year’s £ 146.79 billion, driven by increased volume and price adjustments in the product portfolios of its beer, spirits and spirits divisions. food to mitigate the impact of rising input costs.

“Our financial position and long-term fundamentals remain solid despite the current macroeconomic headwinds. We remain committed to delivering operational excellence and value to all of our stakeholders, as well as good quality products for the daily needs of all of our consumers, ”said Ramon S. Ang, president and CEO of SMFB.

The company’s beer business, San Miguel Brewery Inc., had consolidated revenues of £ 65 billion, up 20% from last year thanks to improved volumes and price increases implemented in October. last year. Operating income jumped 22% to £ 14.7 billion.

The beer business, he said, has rolled out various campaigns in key channels after restrictions were eased following the surge in Covid-19 Omicron in January with the reopening of more on-site outlets. As a result, its domestic operations experienced a 20% volume improvement on a quarterly basis, the company said.

Its international operations have seen strong volume improvements, particularly in its Thailand, Indonesia and export units.

Meanwhile, revenues from the spirits business under Ginebra San Miguel Inc. jumped 14% to £ 23.1 billion, driven by a 9% increase in volumes and a modest price increase. Strong thematic campaigns, consumer promotions, expansion of the distribution network and efficiencies supported growth. Revenue from operations increased 25% to £ 3.3 billion.

San Miguel Food, meanwhile, also sustained its growth from the first quarter and posted consolidated revenues of £ 84 billion, a 16% increase from the previous year driven by strong volume growth in some categories of food. products and substantial price transfers to partially absorb the increase in raw material costs.

The animal nutrition and health and flour segments continued to experience strong revenue growth, with volumes and prices experiencing double-digit increases, while the prepared and packaged foods business remained resilient with moderate growth both in terms of volume and price.

Its poultry segment, meanwhile, has faced supply shortages due to erratic weather conditions, limiting its ability to meet a surge in demand for restaurant services as on-site restaurants have returned strongly. The company said the low supply pushed prices up and bolstered its performance.

Consolidated operating profit reached P8.6 billion or a 3 percent improvement over last year.

“The food sector has been actively working to reduce costs by improving efficiency, increasing productivity and maximizing the utilization of its expansion facilities,” the company said, adding that the global macroeconomic outlook remains uncertain and the rest of the year. it could continue to be challenging.

“SMFB will continue to implement various strategies and efficiencies to mitigate cost pressures and help protect profits.”